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Concentrations
9 Months Ended
Sep. 30, 2023
Risks and Uncertainties [Abstract]  
Concentrations

14. Concentrations

 

Revenues from a limited number of customers have accounted for a substantial percentage of our total revenues. During the three months ended September 30, 2023 and 2022, our largest customer, the State of Michigan, accounted for 31% and 37%, respectively, of our total revenues. For the three months ended September 30, 2023 our second largest customer, Lansing Schools, accounted for 5% of our total revenues. During the nine months ended September 30, 2023 and 2022, our largest customer, the State of Michigan, accounted for 34% and 37%, respectively, of our total revenues, and our second largest customer, Rocket Mortgage, accounted for 5% and 7%, respectively, of our total revenues.

 

For the three months ended September 30, 2023 and 2022, government contracts, including K-12 education, represented approximately 82% and 78% respectively, of our net revenues. For the nine months ended September 30, 2023 and 2022, government contracts, including K-12 education, represented approximately 79% and 77%, respectively, of our net revenues. A significant portion of our sales to resellers represent ultimate sales to government agencies.

 

As of September 30, 2023, accounts receivable concentrations from our two largest customers were 29% and 4% of our gross accounts receivable, respectively by customer. Accounts receivable balances from our two largest customers at September 30, 2023 have been partially collected. As of December 31, 2022, accounts receivable concentrations from our two largest customers were 44% and 7% of gross accounts receivable, respectively by customer.